MIRA INFORM REPORT

 

 

Report Date :

09.08.2012

 

IDENTIFICATION DETAILS

 

Name :

HIGH FASHION GARMENTS CO. LTD.

 

 

Registered Office :

11/F., High Fashion Centre, 1-11 Kwai Hei Street, Kwai Chung, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

23.03.1978

 

 

Com. Reg. No.:

5510105

 

 

Legal Form :

Private Limited Company.

 

 

Line of Business :

Manufacturer, Exporter, Sales and Marketing, Development, Design.

 

 

No. of Employees :

About 9,100.  (Group Employees)

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


COMPANY NAME

 

HIGH FASHION GARMENTS CO. LTD.

 

 

ADDRESS

 

11/F., High Fashion Centre, 1-11 Kwai Hei Street, Kwai Chung, New Territories, Hong Kong.

 

PHONE:            2614 3811,  2615 5188

 

FAX:                 2614 5487,  2614 0919

 

E-MAIL:            fwlam@highfashion.com.hk

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Lam Foo Wah

 

 

SUMMARY

 

Incorporated on:             23rd March, 1978.

 

Organization:                 Private Limited Company.

 

Capital: Nominal:           HK$10,001,000.00

                       

Issued:                          HK$10,000,002.00

 

Business Category:        Garment Trading.

 

Group Revenue:             HK$2,784,166,000  (Year ended 31-12-2011)

 

Group Employees:         About 9,100.  (As at 31-12-2011)

 

Main Dealing Banker:     Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Banking Relation:           Good.


COMPANY NAME

 

HIGH  FASHION  GARMENTS  CO.  LTD.

 

 

ADDRESS

 

Registered Head Office:-

11/F., High Fashion Centre, 1-11 Kwai Hei Street, Kwai Chung, New Territories, Hong Kong.

 

Factories:  China.

 

Holding Company:-

High Fashion Apparel Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

Ultimate Holding Company:-

High Fashion International Ltd., Bermuda/Hong Kong.

 

Associated/Affiliated Companies:-

High Fashion Group of Companies

Angel Star Investment Ltd., Hong Kong.

Anway Garment Ltd., Hong Kong.

August Silk Inc., USA.

Bramead International Inc., British Virgin Islands/USA.

Cantabian Ltd., Hong Kong.

Dongguan Dalisheng Fashion Co. Ltd., China.

Dongguan Yihao Fashions Ltd., China.

Eminent Garment Ltd., Hong Kong.

Guangdong Theme-Huayu Fashion Co. Ltd., China.

High Fashion (China) Co. Ltd., China.

High Fashion (UK) Ltd., UK.

High Fashion Accessories and Gifts Ltd., Hong Kong.

High Fashion Apparel Ltd., British Virgin Islands/Hong Kong.

High Fashion Commerce Ltd., Hong Kong.

High Fashion Garments Inc., USA.

High Fashion Garments Macao Commercial Offshore Ltd., Macau.

High Fashion Garments Management Ltd., Hong Kong.

High Fashion International (USA) Inc., USA.

High Fashion Knit Co. Ltd., Hong Kong.

High Fashion Knitwear Co. Ltd., Hong Kong.
[Formerly known as Theme International Ltd.]

High Fashion Knitwear Overseas Ltd., Hong Kong.

High Fashion Silk (Zhejiang) Co. Ltd., China.

Navigation Ltd., British Virgin Islands/Hong Kong.

Stage II Ltd., Hong Kong.

The King Garment Ltd., Hong Kong.

Theme Corporate Fashion (Asia) Ltd., Hong Kong.

Theme Corporate Fashion (China) Ltd., Hong Kong.

Theme Corporate Fashion (Overseas) Ltd., Hong Kong.

Theme Fashion (Singapore) Pte. Ltd., Singapore.

Theme Garments (Shenzhen) Co. Ltd., China.

Theme International Holdings (BVI) Ltd., British Virgin Islands.

Winsmart Overseas Ltd., Hong Kong.

Xinchang Augustmoon Silk Production Technology Consultant Co. Ltd., China.

etc.

 

BUSINESS REGISTRATION NUMBER

 

5510105

 

 

COMPANY FILE NUMBER

 

0059176

 

 

MANAGEMENT

 

Group Chairman & Managing Director:  Mr. Lam Foo Wah

 

 

CAPITAL

 

Nominal Share Capital: HK$10,001,000.00 (Divided into 1,000 Ordinary shares and 10,000,000 Non-voting Deferred shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000,002.00

 

 

SHAREHOLDERS

 

(As per registry dated 23-03-2012)

Name

 

No. of shares

 

 

 

Ordinary

Non-voting Deferred

High Fashion Apparel Ltd.

P.O. Box 71, Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.

 

1

10,000,000

Cantabian Ltd., Hong Kong.

 

1

-

 

 

––

–––––––––

 

Total:

2

=

10,000,000

========

 


DIRECTORS

 

(As per registry dated 23-03-2012)

Name

(Nationality)

 

Address

LIN Yuet Man

38E, Block 1, Central Park, 18 Hoi Ting Road, Taikoktsui, Kowloon, Hong Kong.

 

SO Siu Hang, Patricia

            (Chinese)

House 87, 1 Hereford Road, Sunderland, Kowloon Tong, Kowloon, Hong Kong.

 

LEUNG Suk Yin, Hilda

            (Chinese)

14B, Block 9, Provident Centre, 45 Wharf Road, North Point, Hong Kong.

 

LAM Gee Yu, Will

No. 11, Hillview, Custom Pass, 18 Fei Ngo Shan Road, Sai Kung, Kowloon, Hong Kong.

 

CHAN Wai Wei

25B, Kai Tien Mansion, Taikoo Shing, Hong Kong.

 

LAM Foo Wah

            (Chinese)

No. 11, Hillview, Custom Pass, 18 Fei Ngo Shan Road, Sai Kung, Kowloon, Hong Kong.

 

LIN Ping

2-36 Mei Yuan Road, Chengguan Town, Xinchang, Zhejiang, China 312500.

 

 

SECRETARY

 

(As per registry dated 23-03-2012)

Name

Address

Co. No.

High Fashion Garments Management Ltd.

11/F., High Fashion Centre, 1-11 Kwai Hei Street, Kwai Chung, New Territories, Hong Kong.

0140485

 

 

HISTORY

 

The subject was incorporated on 23rd March, 1978 as a private limited liability company under the Hong Kong Companies Ordinance.

It was originally registered under the name of Chittenden Co. Ltd., name changed to High Fashion Garments Ltd. on 30th June, 1978, and further to High Fashion Garments Co. Ltd. on 18th April, 1990.

The name of the building S. Megga Industrial Building was changed to High Fashion Centre on 2nd April, 2001.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

 

 

 

OPERATIONS

 

Activities:                      Manufacturer, Exporter, Sales and Marketing, Development, Design.

 

Lines:                           Specialized in silk and silk blended woven and knit apparels: blouses, pants, jackets and outer garments, skirts, dresses, lingerie and dressing gowns for women, pants, shirts and jackets for men, blazers, co‑ordinates, intimates, sweaters.

 

Brand Names:               AUGUST SILK”, “SILK WORLD” “SILK LEGEND” “AUGUST MOON”, “axelledesoie” “august silk”, etc.

 

Office & Factory Space:  80,000 sq.ft. – self-owned.

 

Group Employees:         About 9,100.  (As at 31-12-2011)

 

Materials Imported:-

Polyester woven fabric – Japan, PRC, Korea and Italy.

Silk woven fabric – PRC and Korea.

Linen – PRC and Japan.

Cotton fabric – PRC and Japan.

 

Markets:                       USA, Canada, Germany, UK., Japan, Italy, etc.

 

Group Revenue: HK$2,554,781,000  (Year ended 31-12-2007)

HK$2,598,031,000  (Year ended 31-12-2008)

HK$2,271,566,000  (Year ended 31-12-2009)

HK$2,724,299,000  (Year ended 31-12-2010)

HK$2,784,166,000  (Year ended 31-12-2011)

 

Terms/Sales:                 L/C, T/T, etc.

 

Terms/Buying:               L/C, T/T, D/P, etc.

 

MEMBERSHIP:             The Chinese Manufacturers’ Association of Hong Kong, Hong Kong.

The Hong Kong General Chamber of Commerce, Hong Kong.
[Membership No. HKH0221]

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$10,001,000.00 (Divided into 1,000 Ordinary shares and 10,000,000 Non-voting Deferred shares of HK$1.00 each)

 

Issued Share Capital: HK$10,000,002.00

 

Group Net Profit:            HK$555,377,000  (Year ended 31-12-2007)

HK$  78,353,000  (Year ended 31-12-2008)

HK$157,450,000  (Year ended 31-12-2009)

HK$217,012,000  (Year ended 31-12-2010)

HK$253,825,000  (Year ended 31-12-2011)

 

Profit & Loss:                Traded at a profitable angle.

 

Condition:                      Keeping in an active and good manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      Reliable.

 

Commercial Morality:     Good.

 

Bankers:-

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

Industrial & Commercial Bank of China (Asia) Ltd., Hong Kong.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

The Bank of East Asia Ltd., Hong Kong.

Wells Fargo Asia Ltd., Hong Kong.

Mellon Bank N.A., Hong Kong Office.

Banque Worms, Hong Kong Branch.

Sumitomo Mitsui Banking Corporation, Hong Kong Branch.

ABN AMRO Bank N.V., Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

High Fashion Garments Co. Ltd. [High Fashion] is a wholly-owned subsidiary of High Fashion Apparel Ltd., a firm registered in the British Virgin Islands, which is in turn a subsidiary of High Fashion International Ltd. [HFIL], a Bermuda-incorporated company with shares listed on The Stock Exchange of Hong Kong Ltd. bearing stock code 608 in August 1992.  HFIL was incorporated in Bermuda in May 1991 as a holding company of the High Fashion Group.

The Group designs and manufactures a comprehensive range of garments including blouses, pants, jackets and outer-garments, skirts, dresses, lingerie and dressing gowns for women, and shirts, pants and jackets for men using woven silk and silk-blended cotton, linen, polyester and rayon.  The Group also designs and manufactures silk knitwears for women and men in all kinds of silk and silk yarns blended with cashmere, wool, cotton, rayon, nylon, linen, and other fabrics.

The Group’s origins can be traced to 1978 when High Fashion was founded by Mr. Poon Hon Kam, Mr. Lam Foo Wah and their associates to manufacture garments.

As its manufacturing capacities grew, in late 1988, the Group began manufacturing garments for DGD Inc. [DGD] for distribution in the United States under the “Diane Gilman” and “DG” brand names.

In April 1989, the Group, through its newly formed associated company, High Fashion Zhongshan Printing, Dyeing & Garment Manufacturing Ltd., acquired production facilities in Zhongshan, China engaged in dyeing, printing and sandwashing silk fabrics.

In March 1990, the Group, through its marketing subsidiary in the United States, launched the “Kriss Kross brandname to introduce a new line of ladies’ washable silk casual sportswear.  Subsequently, more brandnames were launched into the market such as “August Silk”, “Silx”, etc.

In July 1992, HFIL obtained the listing from The Stock Exchange of Hong Kong Ltd. by offering 45 million new shares and 30 million existing shares to the public of HK$0.10 each at HK$2.33 per share.

The Group exports its products to over 20 countries and its major markets include the United States, the United Kingdom and Germany.  The Group’s operations are based in Hong Kong where its headquarters and fabric development department are located.  All of the Group’s garment manufacturing facilities are located in the PRC now.

The Group’s major key manufacturing facilities including weaving mills, dyeing, printing and sandwashing plant, knitting mill and 4 garment factories, all have been accredited ISO 9002.

On 30th December, 1999, the Group made a strategic investment by purchasing from bank creditors of Theme International Holdings Ltd. [Theme], a company incorporated in Bermuda of which securities are listed on The Stock Exchange of Hong Kong Ltd. with stock code 990 in January 1994.  Theme now operates fashion retail business with about 120 retail outlets in the PRC.  In 2000, about 45% of the turnover derived from products marketed under its brand names “August Silkand “Theme.

A new brandname, “U-campus, was launched into the market in January 2000.  U-campusis a life style fashion line, major in cotton, targeted at young consumers, is marketed on the internet and at speciality shops.  The internet portal was jointly developed with the Hong Kong Ploytechnic University.

Revenue for the year ended 31st December 2011 was HK$2.78 billion.  Net profit attributable to shareholders for the year ended 31st December 2011 was HK$254 million, compared with a profit of HK$217 million of 2010, up 17%.

The Group continued to expand the PRC market with full efforts, using a multi-brand strategy, forging a unique competitive brand position that focused on medium to high-end customers, and expanding its powerful retail network.  Leveraging its position as the number one silk enterprise in the world, the Group utilized its strength to proactively develop its silk brand business.

In October 2011, the Group’s High Fashion Silk Industrial Park, which is located in Xinchang, made a great breakthrough: it was honored as the “State’s AAAA Level Scenic Spot for Industrial Tourism” and “Model Enterprise for Industrial Tourism in Zhejiang Province” by the National Tourism Scenic Spot Quality Rating Commission.

In FY 2011, sales to the Group’s five largest customers accounted for 30% of the total sales for the year and sales to the largest customer included therein amounted to 8.5%.  Purchases from the Group’s five largest suppliers accounted for less than 30% of the total purchases for the year.

Global economies are not yet stabilized.  China will still remain one of the fastest growing economies, and the China’s 12th Five-Year Plan will further stimulate domestic market.  With its targets of “growth through establishing strength” and “advancement by transformation and innovation”, the Group has established solid foundations to develop itself as the number one silk enterprise in the world over the years.  It is confident of its well diversified, quality business portfolio and will strategically develop and expand the Group’s business with more initiatives in the future.

The total number of employees of the Group including jointly controlled entities as at the end of 2011 was about 9,100.

On the whole, in view of the subject’s background and parentage, consider it good for normal business engagements.

 

 

REMARKS

 

Brief introduction on the principal director:-

Mr. LAM Foo Wah, aged 63, is a co-founder of the Group.  Mr. Lam is the Chairman and the Managing Director of HFIL.  He is also the chairman of Theme.  Mr. Lam oversees the Group’s operations and is responsible for formulating the Group’s overall policy and development.  He has over 30 years experience in the manufacturing and marketing of garments industry.

 


Court case:-

Date

Plaintiff

Defendant

Cause

Amount

Feb. 1992

Champion Year Garments Ltd.

High Fashion Garments Co. Ltd.

Amount due – Goods sold and delivered

US$44,310

Aug. 1992

Advances Apparel Accessories Ltd.

High Fashion Garments Co. Ltd.

Amount due – Goods sold and delivered

HK$346,303

July 1998

Adobe Systems Inc., Microsoft Corp. and Symantec Corp.

High Fashion Garments Co. Ltd.

Infringement of copyright patents and designs

Not stated

Aug. 2000

Uete Akiyuki

High Fashion Garments Co. Ltd.

Wages

HK$318,489


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.15

UK Pound

1

Rs.86.00

Euro

1

Rs.68.31

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.